Economics, Accounting & Business: Post your doubts here!

[youzair]

Hi please me help me with q13,q20 and q24 of the following paper-
http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s04_qp_3.pdf
Thanks

Question 13: A
Less land because $1 spent gives only quarter output, more capital because$1 spent gives 3 output.


Question 20: C
The ratio of capital to output is $1 to$4, 100m/$25. So$10m more of the output needs $2.5m more output.

 

[2pac]

Question 13: A
Less land because $1 spent gives only quarter output, more capital because$1 spent gives 3 output.


Question 20: C
The ratio of capital to output is $1 to$4, 100m/$25. So$10m more of the output needs $2.5m more output.

I didn't understand the reason behind the 13th question.I understood the calculation part of each factor of production respectively but then don't how we finalize with option A.I know it'll be difficult to explain this so any helpful links for this related topic?

 

[youzair]

I didn't understand the reason behind the 13th question.I understood the calculation part of each factor of production respectively but then don't how we finalize with option A.I know it'll be difficult to explain this so any helpful links for this related topic?

First see the relative cost of employing each factor, i.e what is the cost of producing 1unit from land, labour and capital
Cost of producing 1unit
Land=$4
Labour=$3
Capital=$⅓

so land is expensive FOP of all.
we will employ less land and use more capital, and capital doesnt require much land for production compare to labour. Always compare the relative costs, the FOP with high per unit cost will be employed less and with low unit per cost will be employed more in order to minimize cost.

 

[redapple20]

Ok this may sound stupid! But in h randalls additional ex Q1 of chap 24 cash flow can sum1 plx explain me the treatment of depreciation of premises and the revaluation amount! Pleaz3!:/

 

[Echelon94]

what are you talking about?
Freehold Premises are neither being depreciated nor revaluated in the question (you are talking about the Contraflo Ltd's question right?)....

 

[wajiman]

Ok this may sound stupid! But in h randalls additional ex Q1 of chap 24 cash flow can sum1 plx explain me the treatment of depreciation of premises and the revaluation amount! Pleaz3!:/

dont use h.randall black book for cash flow statements, the format has been changed according to IAS 7, pls have a look at oct nov 11 p4, 10 p4. i m not sure either its is oct nov or may june

 

[WaleedUQ]

Can someone teach me
seriously ' teach me ' how to do CAPITAL REDUCTION
I CANT DO THEM !
esp those dividends stuff..
and process costing too

 

[reina81]

In ON11 P42 Q2 why haven't they included dividends for the income statement in part "a" and in b they included last years dividend in calculating retained earnings. Also they used a different format for the balance sheet is it ok if i dont follow this one as i always use assets - liabilities =capital.
http://www.xtremepapers.com/papers/...AS Level/Accounting (9706)/9706_w11_qp_42.pdf
http://www.xtremepapers.com/papers/...AS Level/Accounting (9706)/9706_w11_ms_42.pdf

 

[redapple20]

Pie ltd

what are you talking about?
Freehold Premises are neither being depreciated nor revaluated in the question (you are talking about the Contraflo Ltd's question right?)....

 

[redapple20]

But wont both the patterns b acceptable? I know da difference of intrest and tax to b situated in note 1 ryt? I think!

 

[wajiman]

But wont both the patterns b acceptable? I know da difference of intrest and tax to b situated in note 1 ryt? I think!

the old pattern conflicts with the IAS standard and so will not be acceptable

In ON11 P42 Q2 why haven't they included dividends for the income statement in part "a" and in b they included last years dividend in calculating retained earnings. Also they used a different format for the balance sheet is it ok if i dont follow this one as i always use assets - liabilities =capital.
http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w11_qp_42.pdf
http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w11_ms_42.pdf

proposed dividends from now onwards are not going to be treated and for the balance sheet, both formats are k

Can someone teach me
seriously ' teach me ' how to do CAPITAL REDUCTION
I CANT DO THEM !
esp those dividends stuff..
and process costing too

i might be able to help and you have not posted the answer for that cash flow question you gave

 

[WaleedUQ]

the old pattern conflicts with the IAS standard and so will not be acceptable



proposed dividends from now onwards are not going to be treated and for the balance sheet, both formats are k




i might be able to help and you have not posted the answer for that cash flow question you gave

bhai i dont have ans mujhe khud karna parega !
pehle mujhe ye seeekhado

 

[reina81]

the old pattern conflicts with the IAS standard and so will not be acceptable



proposed dividends from now onwards are not going to be treated and for the balance sheet, both formats are k




i might be able to help and you have not posted the answer for that cash flow question you gave

what about the b part, the previous year's dividend was included when they found retained earnings? and what do you mean proposed divs are no longer treated?

 

[Anusuya]

may/june 2008 paper-4
Ques. 1 a) how is the revaluation done here in the capital acc.??

 

[wajiman]

what about the b part, the previous year's dividend was included when they found retained earnings? and what do you mean proposed dividends are no longer treated?

First coming to proposed dividends, these dividends were paid in the next accounting period as they were proposed so from now onwards, the proposed dividends are said to be subtracted from the next year's accounting period and so are not to be recorded as a liability.

Further info: It was done like this due to the reason that it took companies to prepare 3 months for their year end financials and as the Company act says they are to be paid in 40 days after declaration, they were already paid in the next accounting period, before the last year financial accounts could be made

well, coming to the retained earnings, the dividends could have been subtracted from the retained earning in the income statement, in the mark scheme he just did it till net profit. the retained earnings provided in the trial balance is the accumulated retained earnings from last years, so we can add the net profit into retained earnings and then subtract the last year's proposed dividend and this year's interim dividend. on the contrary, you can subtract both from the income statement and you will get a net loss and subtract it from the retained earning given in the balance sheet, you will get $189,000.

 

[reina81]

First coming to proposed dividends, these dividends were paid in the next accounting period as they were proposed so from now onwards, the proposed dividends are said to be subtracted from the next year's accounting period and so are not to be recorded as a liability.

Further info: It was done like this due to the reason that it took companies to prepare 3 months for their year end financials and as the Company act says they are to be paid in 40 days after declaration, they were already paid in the next accounting period, before the last year financial accounts could be made

well, coming to the retained earnings, the dividends could have been subtracted from the retained earning in the income statement, in the mark scheme he just did it till net profit. the retained earnings provided in the trial balance is the accumulated retained earnings from last years, so we can add the net profit into retained earnings and then subtract the last year's proposed dividend and this year's interim dividend. on the contrary, you can subtract both from the income statement and you will get a net loss and subtract it from the retained earning given in the balance sheet, you will get $189,000.

so basically proposed dividends of the previous financial year are treated just like interim dividends for the next year right?​

 

[wajiman]

so basically proposed dividends of the previous financial year are treated just like interim dividends for the next year right?​

xactly.

 

[redapple20]

Difference to btao plz

 

[wajiman]

Difference to btao plz

kis cheese ka difference?? :S

 

[redapple20]

Purane aur naye pattern mai? Cash flow